If you are an existing Virgin active member then you may be delighted to know that the company is focused on investing in their clubs. Picture: Thobile Mathonsi/African News Agency(ANA)
If you are an existing Virgin Active member then you may be delighted to know that the company is focused on investing in their clubs.
In order to improve member experience, Virgin Active has invested more than R430 million so far this year.
The company may easily hit R500m in investment by the end of the year, according to management.
WHERE HAS THE MONEY GONE?
The athletic company argues that major investment has gone into upgrading its clubs, loadshedding mitigation, product offerings, member App and loyalty programmes.
LOADSHEDDING
Virgin Active said that they were invested in alternative power solutions.
Out of the 129 clubs, 100 currently had a solution in place.
“Loadshedding has become an indisputable part of daily life for South Africans, and as such, we are implementing loadshedding mitigation into our clubs to avoid disrupting the wellness experiences of our members,” said Virgin Active Group CEO, Dean Kowarski.
Loadshedding investments include inverter solutions, as well as upgrading to LED lights that will be installed in 44 clubs, to reduce electrical consumption by 2 million Kwh.
INVESTMENT IN CLUBS
Virgin Active has accelerated its capital expenditure programme with a large portion of clubs benefiting from significant investment in upgrading their equipment.
The company is upgrading its studios and related equipment in response to the strong demand for group exercise classes.
The athletic business has noted that despite rising inflation, the rise in prices for goods and services and the increasing costs of living, the company has still seen growth in memberships.
South Africans have prioritised their health and lifestyle post-pandemic and therefore Virgin Active has sought to invest in this growth trend.
FOCUS ON THE CUSTOMER AND THEIR NEEDS
The company saw a need to create co-working spaces for its members. Virgin Active clients are now able to use the gym as a “third space” to meet, work remotely, eat and exercise.
Various in-club Kauai restaurants have been upgraded to meet this growing need.
“Our members’ requirements are evolving, and we’re committed to meeting them,” said Kowarski.
“We are seeing good momentum in our sales and access numbers — indicating consumers’ renewed confidence in our environment and a heightened awareness of the importance of exercise and wellness in improving one’s quality of life. It’s the perfect time to reinvest in our estate."
“We’re committed to bringing increased value to our members through this investment, creating spaces and facilities that provide wellness solutions across the spectrum of fitness, nutrition and mental wellbeing,” said Kowarski.
TO LIST OR NOT TO LIST
Virgin Active’s main shareholder, Brait, has been preparing the multinational gym group for listing. There has been no date for the listing as yet.
When questioned by Business Report, Kowarski said there was no set date for the company to list on the JSE, but that the continued growth would most likely see this happen.
He said management were aiming to boost Virgin Active’s profitability and if this continued “the listing will happen naturally”.
BUSINESS REPORT